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The market isn't really established enough to have a strict formula. 1 year revenue is a really rough and dirty way to value a website. We could look at B&M business sales to establish a more sane standard. A B&M business will typically sell at 3 to 5 times EBITDA.

There are factors that should be kept in mind that not a lot of people think about too. For example, how much time does it take to keep a website at the level it's currently earning? If you are considering to buy two websites, both earning $2,000 a month revenues, would you be more likely to buy the one that takes 50 hours a week to keep up, or the one which takes 2 hours a week to keep up?

As Peter says, there will always be ranges. Ultimately valuation is a function of how desirable the property is.

For us, fit is most important, followed by traffic, followed by great content, followed by great monetization, followed by ease of integration.

So if something's a great fit, has great traffic, great content, great monetizatoin and easy integration, we'll pay a higher multiple than if it only fits 2 or 3 of our 5 criteria.

And, to answer the original question, we have a model we use internally to set low/medium/high valuations for properties based on a dozen factors. Obviously we can't share that publicly, but it basically varies between 1x revenue and 10x EBITDA.

And, to answer the original question, we have a model we use internally to set low/medium/high valuations for properties based on a dozen factors. Obviously we can't share that publicly, but it basically varies between 1x revenue and 10x EBITDA.